One tenet at a time… Reach the top of your career goals with this HOLISTIC approach!

Tuesday: Return Driven Strategy FROM THE DESK OF MILES EVERSON: I believe in the power and importance of a return driven organization. For me, this is the kind of organization that we must strive to achieve because this will help us get closer to our goals. But what does it mean to establish a return driven organization and what role does communication play in this? Well, we’d have to do a quick run-through of the Return Driven Strategy framework to find the answer to this question. Keep reading to know why communication is an essential part in building a strong, return driven brand or business. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

One tenet at a time… Reach the top of your career goals with this HOLISTIC approach! The Return Driven Strategy is a business framework that helps leaders better understand, analyze, and employ activities and decisions that produce superior returns and wealth creation. This framework is further expounded in the book titled, “Driven: Business Strategy, Human Actions, and The Creation of Wealth” by DePaul University’s Kellstadt Graduate School of Business Professor, Mark L. Frigo, and Valens Research President and CEO, Professor Joel Litman. The framework summarizes eleven tenets representing eleven activities that lead to wealth creation (at the top of the pyramid). On the base of the pyramid are three foundations, all of which are applicable to every tenet in the framework. One primary benefit that the Return Driven Strategy offers its users is better resource allocation. Aside from that, it assists a firm’s leadership team in choosing actions that are most suitable in achieving the firm’s goals. TENET ONE Ethically Maximize Wealth In order to achieve this tenet, business leaders must first be able to define “wealth” explicitly. Afterwards, all activities in the firm should be aligned towards achieving that goal. It is important that the pursuit of this goal falls within the ethical parameters of the communities in which the business operates. Failure to do so will destroy everything that the leaders hope to achieve. TENETS TWO AND THREE Fulfill Otherwise Unmet Customer Needs Target Appropriate Customer Groups The Return Driven Strategy framework implies that in order to achieve high performance and ethical wealth creation for a firm, customer needs and demands should be fulfilled. Return-driven businesses target customer groups that support the firm’s wealth-creation goals. This includes understanding the psychological reasons behind every customer’s purchase. The framework also states that a firm’s achievement of high returns relies on being a dominant provider of products or services to appropriate customer groups. TENETS FOUR, FIVE, AND SIX Deliver Offerings Innovate Offerings Brand Offerings These three competencies form the driving force behind the creation of the right product or service offerings for the right customer groups. A balance of these offerings depends on the definitions that business leaders provide in the higher tenets. TENETS SEVEN TO ELEVEN Partner Deliberately Map and Redesign Processes Engage Employees and Others Balance Focus and Options Communicate Holistically These tenets represent the five specific types of activities that high-performance firms display to enhance their abilities to reach the higher tenets. THREE FOUNDATIONS OF THE RETURN DRIVEN STRATEGY Genuine Assets These are the things that create competitive advantages and sustain a firm’s high performance. These assets are unique, tangible or intangible, and difficult or impossible to copy. Examples are a firm’s patent portfolios, exclusive customer relationships, proprietary customer information, and key geographic locations. Vigilance to Forces of Change Businesses regularly encounter dynamic threats and opportunities such as governmental and regulatory change, demographic and cultural shifts, as well as scientific and technological breakthroughs. This foundation compels business leaders to adjust their pursuit of each tenet accordingly with each change. To succeed in this aspect, business activities must also be regularly re-evaluated for the firm. Disciplined Performance Measurement and Valuation According to Professor Frigo and Professor Litman’s book, this foundation is the bedrock of all successful business planning, analysis, and performance. Inability to understand what drives valuations will cause business leaders to make the wrong decisions and actions. Now, you might be wondering, “Where does communication or public speaking fall into this framework?” Here is an answer: Communication is applicable to the Return Driven Strategy AS A WHOLE. If you look closely at the Return Driven Strategy framework, “Communicate Holistically” is part of the lower tenets. It means that in order to reach the higher tenets, good communication skills are necessary. As mentioned by Professor Litman in his Speak on the Shoulders of Giants presentation, communication is a key piece of ethically maximizing a firm’s wealth. If you’re in the business industry, mastering the art of public speaking, or communication in general, can open doors of opportunities for you and your business. The better you can communicate… … the better you can organize and improve your brand. … the better your employees and business partners will innovate with you. … the better you’ll be able to deliver on the offerings (tenets four, five, and six). … the better you’ll understand customer needs. Lastly, the better you can communicate, the closer you’ll be towards reaching the highest tenet―maximizing wealth ethically. Don’t underestimate the power of holistic communication! It will not just help you get by in life, but it can also contribute to the achievement of your career goals and organizational goals. Hope you found this week’s insights interesting and helpful. Follow us on LinkedIn. Stay tuned for next Tuesday’s Return Driven Strategy! How many ways are there to expand a business? Learn more about how you can make your brand or business extraordinary on next week’s Return Driven Strategy!